Williams Companies Q2 Earnings Call Highlights

Williams Companies reported higher second-quarter earnings before interest, taxes, depreciation and amortization as growth in its transmission, Gulf Coast, Northeast gathering and processing, and Haynesville-related businesses offset a decline in its upstream segment. Second-quarter 2026 EBITDA rose 6% year over year to $1.92 billion from $1.8 billion, Chief Financial Officer John Porter said. Year-to-date EBITDA was up 10%. The company also raised its full-year adjusted EBITDA guidance to a range of $8.3 billion to $8.5 billion, reflecting stronger base-business performance and the expected contribution from its acquisition of Momentum Midstream.

President and Chief Executive Officer Chad Zamarin said Williams placed Phase 1 of its Socrates Power Innovation project into service last week, delivering 200 megawatts of utility-scale power to a customer. The phase was completed on time and within budget in less than 18 months from commercialization, according to Zamarin. Williams expects to deliver the next Socrates phase before year-end. Chief Operating Officer Larry Larsen said the first phase’s commissioning and load testing proceeded smoothly, with the facility delivering initial power and expected to ramp toward full capacity during the month.

The company is using Socrates as a proof point for its behind-the-meter power strategy, which is aimed at serving data-center and other power demand. Zamarin said Williams remains in discussions with multiple customers and expects to commercialize additional Power Innovation projects before the end of 2026. Management said its future projects could incorporate a combination of rapid deployment, greater scale and hybrid structures designed to support grid expansion. Williams is focusing on locations within its footprint and in areas where infrastructure development can be advanced more readily, Zamarin said.

Williams established a Power Innovation financing joint venture with Blackstone that provides $5.34 billion of committed capital. The arrangement includes $4.4 billion for 49% of expected total growth capital expenditures and more than $900 million of additional consideration to Williams, Porter said. Porter said the capital carries a capped 6.35% cost of equity while allowing Williams to retain operatorship, key decision-making authority and upside participation in the platform. The partnership also includes a buyout option beginning in 2033 at the remaining partner investment balance. According to Porter, the additional consideration improves the ratio of cash flow Williams expects from its five current Power Innovation projects to invested capital by about 56% over the p...